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Indonesia: Govt lowers investment in oil, gas downstream business

  • Jan 15, 2019

The Energy and Mineral Resources Ministry has lowered its investment target in the downstream oil and gas business – pipeline projects, manufacturing facilities and fuel-storage facilities — this year as the ministry failed to achieve its target in the last two years.

This year’s investment target for the oil and gas downstream business has been set at US$589.89 million, compared with $620 million in 2018.

Energy ministry oil and gas program supervision director Soerjaningsih said in Jakarta on Monday that the figure could still increase because some investment projects had not been registered. “The data is still incomplete yet. We will inform the public when the definite data has been decided,” she said as quoted by kontan.co.id.

The investment in pipeline projects implemented by PT Pertagas are the Gresik-Semarang gas pipeline project (US$24.55 million), Tambak Lorok distribution pipeline ($2.09 million), Kendal distribution pipeline project ($90,000), Demak distribution pipeline ($220,000), BOB Siak distribution pipeline project ($9.92 million) and Kuala Tanjung distribution pipeline project ($7.85 million).

Meanwhile, state-owned gas subholding company PT Perusahaan Gas Negara (PGN) will develop two transmission and distribution pipeline projects worth US$5.37 million and $4.88 million, respectively.

The investment in manufacturing facilities are the Grass Root Refinery (GRR) Tuban in East Java worth ($105.5 million), the Pertamina Blue Sky Project in Cilacap ($49.5 million), the refinery development master plan (RDMP) IV Cilacap ($117.5 million), RDMP V Balikpapan ($234.5 million) and RMDP VI Balongan ($12.25 billion).

Meanwhile, fuel storage facilities being developed by PT Rahardja Wirasakti Jaya Mandiri are worth $5.49 million), she added. (bbn)

Source: https://www.thejakartapost.com/news/2019/01/15/govt-lowers-investment-in-oil-gas-downstream-business.html